Since 2014-15, India has consistently run trade surplus with which one among the following countries?
- A.China
- B.Saudi Arabia
- C.USA
- D.Germany
Correct answer
Explanation
The correct answer is C, USA. India sells more goods to the United States than it buys from it, and the USA has been the country with which India runs its largest trade surplus.
A trade surplus means that exports to a country are larger than imports from it. India exports a wide range of goods to the USA, including medicines, gems and jewellery, textiles and garments, engineering goods and, increasingly, electronics such as mobile phones, while its imports from the USA, such as crude oil, LNG, aircraft and machinery, are smaller in value. This is why the USA has long been one of India's biggest trading partners and its leading surplus partner.
A is wrong because India runs its largest trade deficit with China, importing electronics, machinery and chemicals. B is wrong because India imports large quantities of crude oil and LPG from Saudi Arabia, giving it a deficit. D is wrong because India buys more machinery, vehicles and chemicals from Germany than it sells there.
Exam tip: largest trade surplus with the USA, largest trade deficit with China.
Practice Questions
View allConsider the following statements regarding instruments of Monetary Policy: 1. The Central Bank can increase the money supply by increasing the bank rate 2. The Central Bank can increase the money supply by purchasing securities from the public 3. The Central Bank can decrease the money supply by increasing the cash reserve ratio Which of the statements given above is/are correct?
- A.2 only
- B.2 and 3 only
- C.1 and 3 only
- D.1, 2 and 3
Show answer
Buying securities puts money into the economy and raising the cash reserve ratio takes it out, but raising the bank rate reduces money supply instead of increasing it.
Read the full explanation →What is the percentage weightage assigned to Forest and Ecology in the devolution formula given by the Fifteenth Finance Commission of India for sharing of Union tax revenue with the States?
- A.10%
- B.15%
- C.7.5%
- D.2.5%
Show answer
The Fifteenth Finance Commission gave forest and ecology a weight of 10 per cent in deciding each State's share of the divisible pool of Union taxes.
Read the full explanation →In recent years, which one among the following is the source of demand in the Indian economy in descending order?
- A.Private Consumption, Government Consumption, Net Exports, Gross Fixed Capital Formation
- B.Government Consumption, Private Consumption, Net Exports, Gross Fixed Capital Formation
- C.Private Consumption, Gross Fixed Capital Formation, Government Consumption, Net Exports
- D.Government Consumption, Private Consumption, Gross Fixed Capital Formation, Net Exports
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On the expenditure side of India's GDP, private consumption is the largest share, investment (gross fixed capital formation) comes next, then government consumption, and net exports come last.
Read the full explanation →Consider the following statements:
1. Burden of a tax on a commodity is independent of who (buyer or seller) it is explicitly imposed upon
2. Burden of a tax on a commodity depends on the slope of the demand and supply curves
Which of the statements given above is/are correct?
- A.1 only
- B.2 only
- C.Both 1 and 2
- D.Neither 1 nor 2
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Who finally bears a tax (its incidence) is decided by the market, through the elasticities of demand and supply, not by the law that says who must pay it.
Read the full explanation →Which of the following is/are not correct about the Mother's Absolute Affection Programme?
1. Allows all pregnant women to absolutely free and no-expense delivery in public health institutions.
2. Provides assured, comprehensive and quality antenatal care.
3. Promotes undiluted focus on breastfeeding.
4. Provides medical and nutritional care to severely acute malnourished children.
Select the correct answer using the code given below:
- A.1, 2 and 3 only
- B.2 and 3 only
- C.1, 2 and 4 only
- D.3 only
Show answer
The MAA (Mothers' Absolute Affection) programme is only about breastfeeding, so statement 3 is the one correct statement and 1, 2 and 4 are not.
Read the full explanation →